Sorry, we couldn't find any matches

Want to ask a human?

Closing Guide

Closing Guide

Hooray — you've completed a successful campaign on Wefunder! Now it's time to talk about finalizing the campaign: wrapping up administrative details, finalizing investment commitments to make those funds available for disbursement, finishing investor-related documents and contracts, and getting the money.

Your campaign closes on the date set in the Form C as the deadline to reach the (minimum) target offering. If you don’t reach your minimum by the campaign close date, we’ll have to cancel your campaign and refund investors. If you do reach your minimum, congratulations! We’ll start the administrative process of finalizing your campaign and disbursing funds to you.

Where do I find my campaign close date?

You can find your campaign close date on your Form C in the first section, under “Deadline to reach the target offering amount.”

Can I change my close date?

Wefunder allows one extension per campaign with a maximum campaign duration of 8 months. You can also choose to close your campaign early (provided it's been open for at least 21 days), though you must provide investors with a 5 business day closing notice. (Note that the day the notice is sent doesn't count as a business day, so for example if you want to close on a Friday, the closing notice needs to go out the prior Thursday. We'll need a bit of notice to make this happen, so let us know at your earliest convenience if you want to close early). Investors have the right to cancel their commitment up to 48 hours before closing. To make adjustments to your close date, reach out to us at closing@wefunder.com.

How does closing work?

21 days before your campaign closes, we’ll reach out to confirm the date your campaign is closing and initiate next steps. If you have not yet used an extension and would like to, you can do so at this time. At this time, we’ll provide an update on:

Funds committed: This refers to all investments committed to a campaign — whether funded or unfunded. It’s every dollar someone said “I’m going to give to [company],” whether or not said dollar actually made its way to Wefunder.

Funds available: This includes all investments with funds in escrow and ready to be disbursed.

Unavailable or "blocked" investments: This includes all investments which are either underfunded or have funds in escrow but are not ready for disbursement due to another issue (learn more about issues that can block an investment in Section II).

In order for your campaign to be successful, you must clear your minimum target offering with available funds. It’s OK if unavailable investments become available after the campaign closes, but all commitments must be made before you close. We’ll provide you with a list of unavailable investments so you can assist with clearing them.

If you are unable to reach your minimum target offering in available funds, your campaign will be canceled and all investors will be notified and refunded.

What if I need some capital while the campaign is open?

Some founders choose to take advantage of a rolling close, which allows you to withdraw one tranche of available funds from your campaign while the campaign remains open. You must have at least your minimum offering amount in available funds to do so.

Investors with investments eligible for disbursement must first be notified that you're initiating a rolling close and will have 5 business days to opt out of the rolling close. If at the end of 5 business days your campaign still has at least your minimum in available funds, we can schedule a disbursement of available funds. If your available funds have dipped below your minimum due to investors opting out of the rolling close, you won’t be able to withdraw funds from your campaign until the campaign closes.

When you withdraw funds during a rolling close, you will countersign contracts for all investments included in the rolling close. This means that you’ve executed contracts with those investors whose funds are disbursed, and your campaign is officially successful. It also means that you can no longer cancel your campaign and refund investors whose funds you have withdrawn.

If you’d like to initiate a rolling close, feel free to reach out to us at any time to confirm the status of your available funds.

Please note that we require having a bit more than your minimum available before notifying investors about the rolling close (to buffer for any opt-outs). If you also offer early bird terms, we may require a +50% buffer in available funds, depending on the level your early bird is set at. If you’d like greater clarity on this for your campaign, give us a shout so we can help!

Congratulations on a successful campaign! So what’s next?

Our goal is to get you an initial tranche of available funds on the first Friday after 7 days have passed since the day your campaign closed. A member of our team will check to make sure your available funds are over your minimum and work with you to schedule a tranche date.

During this time, we'll also work to clear your blocked investments and ready them for disbursement. We will reach out to you with a list of all your blocked funds, including details on the blockers and how you can help. We will email everyone whose investments are blocked (and ask you to do the same) and ask them to take the necessary steps by a deadline. Once the deadline has passed, we’ll cancel all remaining blocked investments.

Regarding the blockers in Wefunder’s court, we’ll make sure to clear those before your final tranche. We typically disburse all funds within 2-3 tranches, depending on the size of your raise, whether or not you have early bird terms, the number of blocked investments, etc. Once all your blockers have been cleared, we’ll schedule your final tranche of funds on the following Friday.

Some common reasons why investments are blocked and how to clear them:

To resolve an issue with an investment, the investor can visit their My Investments page. Here they will see and be able to resolve any issue with any investment.

Payment failed or missing payment: The investor has committed to investing but we have not yet received their payment.

Reconfirm investment: If an investor needs to reconfirm their investment due to a material change, their funds (even if in escrow) will be blocked until this is resolved. If the investor doesn’t reconfirm the investment within 5 business days of viewing the material changes, the investment must be canceled per SEC regulations.

Re-sign contract: If an investor needs to re-sign their contract to agree to some change of terms during the raise (i.e. if they’ve been upgraded to Early Bird terms), their funds (even if in escrow) will be blocked until this is resolved.

KYC/identity verification: We're unable to verify the investor's identity with the documents provided.

Tax ID: Some companies require that investors provide a tax ID number in order to invest, as their corporate structure will require them to send annual tax documents.

Reconciliation and refunds: These and a handful of other blockers are mostly housekeeping on Wefunder’s side, and we usually don’t handle them until it’s time for a final tranche. However, if all other blockers have been cleared and it is housekeeping items that are keeping available funds from climbing over your minimum, we’ll make an exception and clear them early.

Woohoo! Your money has been disbursed, but there are a few more steps...

1. Once all investments are disbursed, we’ll follow up with your executed contracts and a final investor list. Remember, once contracts are executed you have a legal relationship with your investors. Be mindful to adhere to the terms of the contract, and to keep their personal information secure.

2. Review your investor contracts and Form C to see what is owed to investors (i.e. repayments, stock certificates, etc.) and prepare to delight your supporters by making good!

For Revenue Share or Loans: Reach out to closing@wefunder.com to make sure the repayment schedule is set. You can find the terms in the template contracts your team reviewed (also linked at the bottom of the Form C page). Please also keep in mind if you have early bird terms that those contracts will have different terms.

For SAFEs: Work with your attorney or reach out to closing@wefunder.com to learn about our partners who can work with you to issue stock certificates, provide cap table management, etc. Make sure to follow up with investors and send them updates about this!

Don’t forget to send out perks! If you have questions about perks, email our team closing@wefunder.com.

3. We recommend posting monthly updates (here’s why) to keep your investors engaged and aware of how your company is doing! Here’s an example of how important updating and engaging investors can be to a company’s success.

And remember — your investors form a community of your most committed users/supporters. They’re your most passionate brand ambassadors, so feel free to mobilize this network in your favor!

If your campaign is successful, we’d love for you to raise a future round on Wefunder! Feel free to reach out to your Wefunder contact at any point in the future.

And… as always, feedback! We would love to hear from you! Please email closing@wefunder.com with any thoughts, complaints, celebrations, or anything you’d like to share with us.

Wefunder Inc. runs wefunder.com and is the parent company of Wefunder Advisors LLC and Wefunder Portal LLC. Wefunder Advisors is an exempt reporting adviser that advises SPVs used in Reg D offerings. Wefunder Portal is a funding portal (CRD #283503) that operates sections of wefunder.com where some Reg Crowdfunding offerings are made.
Wefunder, Inc. operates sections of wefunder.com where some Reg A offerings are made. Wefunder, Inc. is not regulated as either a broker-dealer or funding portal and is not a member of FINRA.
By using wefunder.com, you accept our Terms & Privacy Policy. If investing, you accept our Investor Agreement.
You may also view our Privacy Notice.

Shoot us your questions using the form below and a team member will get back to you soon.